Sprott 2010 Flow-Through Limited Partnership has filed a final prospectus in connection with its initial public offering of LP units, Sprott 2010 Corp. announced Tuesday.
The price per unit is $25 and the offering will be capped at $100 million.
The initial closing of the offering is expected on February 18, with subsequent closings expected to be completed prior to the end of March.
The partnership’s investment objective is to provide for a tax-assisted investment in a diversified portfolio of flow-through shares and other securities of resource issuers with a view to achieving capital appreciation and significant tax benefits for limited partners.
The partnership’s portfolio is expected to consist primarily of securities of resource companies whose principal business will be: primarily, oil and gas exploration, development, and/or production and certain energy production that may incur CRCE’s; and to a lesser extent, mining exploration, development, and/or production.
Sprott 2010 Corp. expects limited partners to receive tax deductions equal to 100% of the gross proceeds of the offering for the 2010 taxation year.
The partnership has retained Sprott Asset Management LP (SAM) to provide investment, management and administrative services to Sprott 2010 Corp.
SAM, a subsidiary of Sprott Inc. (TSX:SII), manages a selection of mutual funds and long/short equity hedge funds.
Allan Jacobs and Eric Nuttall make up the SAM management team responsible for the execution of the partnership’s investment. The partnership will also benefit from the insights of SAM’s other investment managers, including Eric Sprott, John Embry and Charles Oliver.
The offering is being made through a syndicate of agents co-led by RBC Capital Markets and TD Securities Inc. and including CIBC World Markets Inc., BMO Capital Markets, National Bank Financial Inc., Dundee Securities Corp., Scotia Capital Inc., Canaccord Financial Ltd., GMP Securities L.P., HSBC Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Desjardins Securities Inc., Manulife Securities Inc. and Wellington West Capital Markets Inc.
IE